We test the influence of classification of securities into liabilities and equity on firms' financing choices, using as our setting the change in reporting classification of hybrid securities following SFAS 150. We find that this change affected the decision of firms to issue mandatorily...

Prior studies find that markets fail to quickly and fully impound accruals information into prices. This paper compares the information environment and pricing of firms that voluntarily disclose accruals in their earnings press releases (Disclosers) to those of control firms that disclose the...

Investors are reluctant to trade in the high-information-asymmetry days before earnings announcements. We show that the decrease in liquidity trading before announcements is asymmetric. We analyze buy and sell orders of investors with passive investment strategies, and find they do not reduce...

This study explores the relationship between changes in managerial risk-taking incentives and adjustments of firms' cost structures, particularly the operating leverage (fixed-to-variable cost ratio). We find managers reduce operating leverage by substituting fixed costs with variable costs,...

We examine the impact of social investing on charitable donations using a unique data set consisting of investment behaviors and donation transactions for over 10,000 customers of an investment app platform. We find that investors switching to a recently introduced social fund reduced their...